How does a Novated Lease work?
A Novated Lease allows the employee to lease a car of their choice from the financier who then novates the agreement to their employer. The monthly lease payments are then paid to the financier out of the employee’s gross salary.
Use of car
The car is available for the employee’s unrestricted use, including private use.
Other running costs
Other running costs can also be deducted directly from the employee’s gross salary by the employer, offering significant benefits to both.
How the Employer benefits:
Offer your employees the extra incentive of a car in their remuneration package and:
• Escape the burden of having to manage a company car fleet
• By-pass the need to record the car as an asset or liability in the business
• Claim an input tax credit on the GST paid on the lease
(there are exceptions to this)
• Be free of lease payments as soon as your employee leaves their job
How the Employee benefits:
• Enjoy tax savings through salary sacrifice arrangements
• Have the car for both work and for private use-
unconditionally
• Have the choice to own the car outright at the end of the lease term
• Maximise your take home salary
•Choose the car you want - and the lease term
• Have a fully budgeted lease - including projected fuel, maintenance, re-registration and insurance costs all reconciled at the end of the contract |
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How our alliance with Pay-Plan can help you
Two teams in one
Pay-Plan is an independent salary packaging administration specialist. Through Set Leasing you will have access to a unique car lease/salary packaging experienced team.
More about Pay-Plan
Pay-Plan is a highly professional boutique company with an unsurpassed track record in the market. They are dedicated to passing on their salary packaging expertise so you will understand every aspect of the novated lease - whether you are an employee or an employer.
If you are an Employee
Pay-Plan will look at your individual circumstances, giving
unbiased advice regarding the best ways for you to
maximise your novated lease package. Throwing out the
jargon, they will clearly explain all aspects of your salary
package, so you can make informed decisions.
If you are an Employer
After asking some key questions in consultation with you,
Pay-Plan will understand your company’s particular needs and be able to offer a customised salary-packaging programme that suits your situation - at a cost effective price.
Web design note: again, might be worth considering trying to
have these two employer/employee sections side by side.
Find out more about Pay-Plan
Or talk to us about salary package leasing: Contact us |
